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Challenging Leadership/ Leadership challenges
April 24, 2012, 4:16 pm
Filed under: Experience, Great Stuff, The Rules

Over on Seth’s blog today was this morsel

A good employee says, “I know that this is a serious problem, it’s hurting our customers and we can do better, but I can’t do a thing about it because it’s run by a different department.”

A version of this might conclude with, “And I don’t even know the name of the person who’s responsible.”

This is a sure sign of systemic failure as well as a CEO who is not doing the job she should be. When smart people who care get frustrated, something is wrong.

There’s an intesection here and a paper that Deloitte relased yesterday:

Based on a global study of investment bankers, private equity companies, and financial analysts, the paper, The Leadership Premium: How companies win the confidence of investors, puts a hard metric on the “intangible asset” of leadership, revealing that, in some sectors, good leaders can account for more than one-fifth of equity value.

The gap between the value of an effectively-led and ineffectively-led company could, says the paper, be as much as 35.5 percent.

It’s a pretty good read, and one that full of steal able insights about the core components of value building leadership and the importance of leaders taking their teams along for the ride:

“All employees should have the same goal and process in mind… the same direction”

Investment analyst, US

Here are my notes:

Many major corporations have found that orthodox management practices and organizational principles are not well suited to the modern era. Our view is that current conditions don’t demand a revolution so much as a renewed focus on the fundamentals of leadership

Three value delivering components

  • Strategic Clarity
  • Successful execution
  • A culture of innovation

Strategic Clarity

Organizations need to decide on where and on what basis they will compete. e.g

  • Virgin Media’s decision to focus on it’s network as its core strategic asset was the beginning of an impressive corporate turnaround
  • Southwest Airlines’ early use of the internet and online booking and check-ins has helped consolidate its positions as a low cost, low fares carrier.
  • Apple’s relentless focus on ‘insanely great’ products allowed it to transform consumer electronics
  • FedEx Ground’s emphasis on service and its early use of tracking systems (as RPS in the 1980s) enabled it to challenge UPS

Strategic clarity involves delivering a vision of what the organization needs to achieve

  • and a framework that leaves enough room for people to create the future
  • with consistency and commitment

Successful Execution

Common to organisations is the belief that the only long term differentiator they have is their people. The priority for an organisation has to be getting the best out of its people by ensuring that they are willing and able to fulfil its aims

  • Believe: compelling reasons, communication and bulid commitment
  • Belong: leaders need to articulate a long term purpose beyond just making money
  • Behave: adaptive, value driven, team building, respectful,
  • Able: capabilities, resources infrastructure

A Culture of Innovation

Great ideas are generated and developed through interaction.

  • Commitment to enterprise; an environment for ideas
  • Collaboration culture
  • The freedom to experiment (and fail)
  • It’s not about hiring new radical thinkers
    • It’s about realizing the potential of the thinkers you’ve got

I liked this check list:

Effective leadership characteristics

  • Capabilities
    • Driving competitiveness and innovation
    • Providing direction and purpose
    • Making effective decisions
    • Inspiring others to act
    • Developing people
    • Building high performing teams
    • Personal qualities
      • Integrity, probity and humility
      • Moral courage
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